Obama signs into law tough new sanctions against Iran’s cent
Posted: Sun Jan 01, 2012 10:47 amObama signs into law tough new sanctions against Iran’s central bank, financial sector
U.S. President Barack Obama Saturday signed into law tough new sanctions targeting Iran’s central bank and financial sector, in a move likely to deepen acrimony between Washington and Tehran.
The measures, meant to punish the Islamic Republic for its nuclear program, were contained in a $662 billion defense bill, which officials said Obama signed despite reservations about its impact on Iran policy and detaining terror suspects.
“The fact that I support this bill as a whole does not mean I agree with everything in it,” Obama said in a statement, citing limits on transferring detainees from the U.S. base at Guantanamo Bay, Cuba, and requirements he notify Congress before sharing some defense missile information with Russia as problematic.
The bill, approved by Congress last week, aims with its Iran sanctions to reduce Tehran’s oil revenues but gives the U.S. president powers to waive penalties as required. Senior U.S. officials said Washington was engaging with its foreign partners to ensure the sanctions can work without harming global energy markets, and stressed the U.S. strategy for engaging with Iran was unchanged by the bill.
Iran dismisses the bill
Iran dismissed on Sunday Washington’s move to impose new sanctions on financial institutions dealing with the Islamic state’s central bank, the Students news agency reported.
The head of Iran’s Chamber of Commerce, Mohammad Nahavandian, rejected the move as “unjustifiable”, saying such sanctions would have reciprocal consequences.
“The Iranian nation and those involved in trade and economic activities will find other alternatives,” Nahavandian was quoted by Reuters as saying.
Iranian officials insist that foreign sanctions have had no impact on the country’s economy.
“The sanctions have raised the cost of trade and economic transactions but it has not managed to change Iran’s political behavior,” Nahavandian said.
Obama signs bill in Hawaii
Obama signed the bill in Hawaii where he is on vacation, at a time of rising tension with Tehran, which has threatened to block the Strait of Hormuz – through which more than a third of the world’s tanker-borne oil passes.
The United States has warned it will “not tolerate” such an interruption.
The White House held intense negotiations with Congress on the terms of the law’s implementation, given concern that sanctions on Iran’s central bank could spark chaos in the global financial system and hike the price of oil.
Obama said in a statement issued as he signed the bill that he was concerned the measure would interfere with his constitutional authority to conduct foreign relations by tying his hands in dealings with foreign governments.
The bill, which passed with wide majorities in Congress, did reserve some wiggle room for Obama, granting him the power to grant 120-day waivers if he judges it to be in the national security interests of the United States.
Earlier this month, Treasury Secretary Timothy Geithner wrote to Congress to express concern against an earlier, tougher sanctions measure along the same lines saying it could harm the U.S. push with its partners to isolate Iran.
Geithner said in an interview with AFP that foreign allies could resent the new U.S. measures and make it less likely they would cooperate and the sanctions would have the “opposite effect” of their intended purpose of isolating Iran.
Senior U.S. officials said Saturday that they would try to implement the new sanctions guidelines in a way that protected the global economy and U.S. foreign policy priorities, in a way which would still inflict pain on Iran.
There are fears that increased sanctions on Iran’s central bank could force the global price of oil to suddenly soar, and actually give Tehran a financial windfall on its existing oil sales.
Rising oil prices could also crimp the fragile economic recovery in the United States and inflict pain on American voters in gas stations ─ at a time when Obama is running for reelection next year.
The Obama administration argues that it has imposed the toughest-ever sanctions on Iran by the United States and its allies and says the measures are now having a punishing impact on the Iranian economy and petroleum sector.
The West alleges Tehran is seeking to acquire a weapons capability under the guise of its nuclear research program. Iran denies any such ambition and says its work is only for civil energy and medical purposes.
In recent weeks, Iranian officials have insisted the country was ready to face new sanctions against the oil sector and central bank.
The Wall Street Journal reported this month that U.S. and European officials were seeking assurances from major oil producers, such as Saudi Arabia, Kuwait and the United Arab Emirates, that they would increase exports to the West and Asian nations if tighter sanctions on Tehran’s energy exports are enforced.
Meanwhile, the EU said that it is ready for a new round of talks with Iran but must be without preconditions in response to Iran’s proposal on Saturday to hold talks on its nuclear program with six world powers.
The country’s top nuclear negotiator, Saeed Jalili, said he has formally called on the United States, Russia, China, Britain, France and Germany to return to negotiations.
http://bit.ly/ufGvn3
U.S. President Barack Obama Saturday signed into law tough new sanctions targeting Iran’s central bank and financial sector, in a move likely to deepen acrimony between Washington and Tehran.
The measures, meant to punish the Islamic Republic for its nuclear program, were contained in a $662 billion defense bill, which officials said Obama signed despite reservations about its impact on Iran policy and detaining terror suspects.
“The fact that I support this bill as a whole does not mean I agree with everything in it,” Obama said in a statement, citing limits on transferring detainees from the U.S. base at Guantanamo Bay, Cuba, and requirements he notify Congress before sharing some defense missile information with Russia as problematic.
The bill, approved by Congress last week, aims with its Iran sanctions to reduce Tehran’s oil revenues but gives the U.S. president powers to waive penalties as required. Senior U.S. officials said Washington was engaging with its foreign partners to ensure the sanctions can work without harming global energy markets, and stressed the U.S. strategy for engaging with Iran was unchanged by the bill.
Iran dismisses the bill
Iran dismissed on Sunday Washington’s move to impose new sanctions on financial institutions dealing with the Islamic state’s central bank, the Students news agency reported.
The head of Iran’s Chamber of Commerce, Mohammad Nahavandian, rejected the move as “unjustifiable”, saying such sanctions would have reciprocal consequences.
“The Iranian nation and those involved in trade and economic activities will find other alternatives,” Nahavandian was quoted by Reuters as saying.
Iranian officials insist that foreign sanctions have had no impact on the country’s economy.
“The sanctions have raised the cost of trade and economic transactions but it has not managed to change Iran’s political behavior,” Nahavandian said.
Obama signs bill in Hawaii
Obama signed the bill in Hawaii where he is on vacation, at a time of rising tension with Tehran, which has threatened to block the Strait of Hormuz – through which more than a third of the world’s tanker-borne oil passes.
The United States has warned it will “not tolerate” such an interruption.
The White House held intense negotiations with Congress on the terms of the law’s implementation, given concern that sanctions on Iran’s central bank could spark chaos in the global financial system and hike the price of oil.
Obama said in a statement issued as he signed the bill that he was concerned the measure would interfere with his constitutional authority to conduct foreign relations by tying his hands in dealings with foreign governments.
The bill, which passed with wide majorities in Congress, did reserve some wiggle room for Obama, granting him the power to grant 120-day waivers if he judges it to be in the national security interests of the United States.
Earlier this month, Treasury Secretary Timothy Geithner wrote to Congress to express concern against an earlier, tougher sanctions measure along the same lines saying it could harm the U.S. push with its partners to isolate Iran.
Geithner said in an interview with AFP that foreign allies could resent the new U.S. measures and make it less likely they would cooperate and the sanctions would have the “opposite effect” of their intended purpose of isolating Iran.
Senior U.S. officials said Saturday that they would try to implement the new sanctions guidelines in a way that protected the global economy and U.S. foreign policy priorities, in a way which would still inflict pain on Iran.
There are fears that increased sanctions on Iran’s central bank could force the global price of oil to suddenly soar, and actually give Tehran a financial windfall on its existing oil sales.
Rising oil prices could also crimp the fragile economic recovery in the United States and inflict pain on American voters in gas stations ─ at a time when Obama is running for reelection next year.
The Obama administration argues that it has imposed the toughest-ever sanctions on Iran by the United States and its allies and says the measures are now having a punishing impact on the Iranian economy and petroleum sector.
The West alleges Tehran is seeking to acquire a weapons capability under the guise of its nuclear research program. Iran denies any such ambition and says its work is only for civil energy and medical purposes.
In recent weeks, Iranian officials have insisted the country was ready to face new sanctions against the oil sector and central bank.
The Wall Street Journal reported this month that U.S. and European officials were seeking assurances from major oil producers, such as Saudi Arabia, Kuwait and the United Arab Emirates, that they would increase exports to the West and Asian nations if tighter sanctions on Tehran’s energy exports are enforced.
Meanwhile, the EU said that it is ready for a new round of talks with Iran but must be without preconditions in response to Iran’s proposal on Saturday to hold talks on its nuclear program with six world powers.
The country’s top nuclear negotiator, Saeed Jalili, said he has formally called on the United States, Russia, China, Britain, France and Germany to return to negotiations.
http://bit.ly/ufGvn3